Two barometers of the US economy are moving in different directions, sending mixed messages about the depth, breadth and speed of the recovery.
While housing is faltering (in part because the federal home-buyer tax credit has now expired), shipping is rebounding—a sure sign that retailers are betting on increased consumer spending in the months to come.
On the housing front, the Mortgage Bankers Association reported Wednesday that applications to buy homes fell to a 13-year low, dropping 3.1 percent in the last week and refinancing applications fell 2.9 percent, in spite of 30-year fixed rates hitting a low.
Also on Wednesday, Goldman Sachs downgraded the homebuilding sector to neutral. The PHLX Housing Sector Index , a clutch of homebuilding and building material stocks, has fallen 22 percent since the end of April, when the tax credit ended.
Yet, while retail sales slowed in May and June, shippers and ports and shipbuilders are largely on the upswing.
According to PIERS Global Intelligence Solutions , container ship trade in the US year-to-date, January through May, is up 12 percent over last year.Page 1 of 2 | Next Page